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What is a Production Management System?

 

¡ Production Management System

Features of Production Management System

 

Manufacturing requirements are determined based on sales forecast, customer orders or inventory targets.  With AMMIC CM/P, production schedule is generated with information provided by different modules such as customer order, inventory, manufacturing order and purchase order.  With this schedule, management can effectively plan the production, monitor the inventory movement and set the production target.  Furthermore, the system provides tools to analyze productivity and its production cost given the schedule and the actual production for a certain period.

 

 

With lot tracking function, system provides strict quality control. As fully integrated with other systems such as Financial Management System and Cost Management System, data processing is efficiently done and data integrity is maintained.  Management can derive information necessary for decision making from different modules integrated to the Production Management System.  It gives them ways to evaluate performance of each department in the company especially in production. In addition, information is disseminated accordingly.

 

And if the production results adequately meet the requirements of production schedule plan, it shows that an effective Production Management System is utilized.

 

¡ Production Management System supports Customer Needs

Nowadays, production management system has been developed not only to serve the needs of production but it caters to the needs of sales and their customers as well.  With the enhanced production management system, the sales activity becomes more efficient.   Features are provided where customer satisfaction is met.  Because of accurate and on time sales information of customer orders, production and its plan is easily done.  An effective control of inventory and cost is achieved.



¡ Production Management System Diagram

Below is the diagram that shows the flow of production management system.  The activities consist of planning, scheduling, and development.    Accurate and timely gathering and processing of bulk data are accomplished because of fully integrated modules installed with the whole system.  With automatic processing like creation of data and report generation, requirements of management for data integrity and quick access to information are met.

¡ Requirements for a Production Management System

A production management system should meet the requirements of a manufacturing industry for the following:

E Decrease manpower in order to decrease cost.
E
Respond quickly to the needs of production and provide accurate and timely information to    management.
E
Fully integrated production data.
E
Provide flexible production and cost control.
E
Capable of processing data and gathering information by factory or manufacturing section.

E Customer oriented production system

E With EUC iEnd User Computing) capability.

E International quality standard - ISO9000 and GMP - Compliant.

¡ What are the benefits from using an ERP package?

With an ERP package installed, management is assured of increase in efficiency in all activities within the company such as purchasing, manufacturing, sales and accounting.  Because of fully integrated processing of data and generation of reports, control over inventory and cost is effectively done.  Necessary adjustment to any activities in production and sales is easily determined because of timely access to accurate information. 

 

As what is always mentioned as main quality of current ERP, its big difference from the old version is that it is now fully integrated and information of different activities to produce the data can be processed automatically.  Below is list of a good quality ERP package:


 

Support basic business requirements of top management for financial and production information that are essential to their decision-making.

Support requirements of a manufacturing industry for determining production based on market, incoming order or required inventory level of the management.  In addition, production by project type can be done.

Support data integrity requirement such as validation for duplicate records, data accuracy and security control.  Real time update of transactions is provided.  Example, when shipment of finished product is processed, inventory is immediately updated and its transaction can be automatically interfaced to accounting for journal entry.  In effect, there is a prompt recording of results to Profit and Loss Statement.

Business process lead-time is reduced and backlog is avoided because of the interface between sub-systems.  Monthly calculation of data and information is speed up.

Provide user-friendly system maintenance and operation.  User can easily learn the functions.

Provide features that are common to the industry so it can effectively support the needs of a manufacturing company with huge operation.

 

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Additional source (Bibliography): Success of Law of ERP for supply chain (industrial committee); Basis of production management system diagram – SCM and ERP (the Japanese industry publisher)

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